Luxuries eating in to savings

Maybe to fight of the winter blues, maybe just as a post Christmas treat, but for whatever reason Brits are dipping in to their savings for the little luxuries in life, new research has revealed.

According to a new survey from Birmingham Midshires, over the last three months Brits were four times more likely to splash out on indulgent treats rather than on essential items.

Gifts, impulse buys and luxury shopping were the top areas for piggy bank raiding with 33 per cent of those that dipped in to their savings (almost half the population) using the extra cash to fund these extravagant purchases.

Poor planning and impromptu holidays also meant the savings pot was reduced with 27 per cent blaming overspending on current accounts and 21 per cent attributing holiday trips as the cause.

Though a little of what you fancy may be god for you, Kevin Mountford, head of savings for Birmingham Midshires said: “Although we know that Brits are savvy enough to ensure they are contributing to their savings on a regular basis, their desire to live a life of luxury is damaging their nest egg.

“Our report also shows that a lack of planning is eating away at piggybanks across the country ñ another slippery slope that could leave them short in the future. Our advice is always to plan ahead when it comes to allocating your savings for the month ñ ensure you can afford those extra treats to avoid the guilt of raiding what youíve worked hard to achieve.”

© Adfero Ltd

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